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Model Bilateral Investment Treaty

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Prelims and Mains

India's model Bilateral Investment Treaty is the template for its treaties protecting investment with other countries; the model in force dates from 2016.

What changed

  1. 9 Jun 2026Briefnewly addedA revised model, still being drafted, would cut the time a foreign investor must spend in Indian courts before international arbitration to two years from five. Officials said it was leaning towards no most favoured nation clause. Mains: The five year wait in Indian courts had been seen as a deterrent to foreign investors, which a shorter wait is meant to remove. The New Indian Express (via bilaterals.org), 9 Jun 2026: New bilateral investment model (opens in a new tab)

Net foreign direct investment

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Prelims

Net foreign direct investment (FDI) is gross FDI inflows less repatriation by foreign investors and outward investment by Indian firms.

What changed

  1. 27 Sep 2026Briefnewly addedNet FDI reached US$7.35 billion in July 2026, the highest since May 2021, and net FDI for April to July was up 38 per cent. Mauritius, the United Arab Emirates and the United States supplied about 70 per cent of equity inflows. NiftyTrader, 27 Sep 2026: Net FDI inflows in July 2026, citing Reserve Bank of India data (opens in a new tab)

  2. 11 Jun 2026Briefnewly addedGross FDI inflows were US$ 94.6 billion in 2025-26, but net FDI was only US$ 7.6 billion. The gap came from repatriation by financial investors and outward investment by Indian firms. The Hindu, 11 Jun 2026

India and Israel Bilateral Investment Treaty

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Prelims

The India and Israel Bilateral Investment Treaty, signed on 8 September 2025, protects the investments of each country's investors in the other.

What changed

  1. 4 Jul 2026Briefnewly addedThe treaty entered into force, making Israel the first Organisation for Economic Co-operation and Development (OECD) member to accept India's 2016 model treaty. Investors must pursue local remedies for five years before international arbitration, and taxation is carved out. Deccan Chronicle, 4 Jul 2026: India-Israel bilateral investment pact comes into force (opens in a new tab)

Export inventory in foreign funded e commerce

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Prelims

Foreign direct investment (FDI) in Indian e commerce is governed by the Foreign Exchange Management (Non debt Instruments) Rules, 2019, which allow it in the marketplace model.

What changed

  1. 2 Sep 2026Briefnewly addedThe Department of Economic Affairs amended the rules to let foreign funded e commerce firms hold inventory of goods made in India solely for export. FDI in inventory based e commerce for domestic sales remains prohibited, so only the marketplace model serves Indian buyers. Department of Economic Affairs, Ministry of Finance, 2 Sep 2026

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